Quantum Group Blog

Quantum Group LLC brings wireless infrastructure tower assets buyers and sellers together to structure favorable deals for both - but only represents sellers. "We work for sellers and sellers only," said Philip Brown, president and founder. "If they control an asset, we can represent their interests. The Overland Park, Kansas, privately owned company works with all sizes of customers from large public companies to small mom-and-pop businesses. They help sellers liquidate towers, tower assets, rooftop wireless and leases, and provide site valuations at no charge. In fact, Quantum Group works for its clients on a contingent-fee basis.

Accurately evaluating the assets of clients is important at Quantum Group. If a business is over-valued, it won't sell. If it's undervalued, the owner will lose equity - sometimes in the millions. "The paper process behind tower deals is extensive, and we underwrite entirely every aspect of our deals," Brown said. "Every document comes through us. If anything is missing, we follow up until it gets our seal of approval." Brown credits his staff for the company's high customer satisfaction. It includes an attorney on staff, project managers, underwriters and the front line people who work directly with the clients. The average employee has been with Quantum for 8 years. "We have done 700 tower transactions since going into business in 1996," Brown said. "Currently, we are completing 35 to 40 each year and have done network deals in the tens of millions."

If you missed Quantum Group's ad in this month's Inside Tower Newsletters we have it here for your viewing. Quantum Group is proud of its team members and the work they do day-in-and-day-out for not only Quantum Group, but also their clients. We hope that our ads reflect Quantum Group's appreciation for not only its staff, but the clients our staff represents. Thanks to everyone for their continued support of Quantum Group and we look forward to doing business with you in the near future!

Until recently the dominant industry revenue driver for tower development and management companies has been the vertical macro-tower site, which requires expensive footprint real estate. However, the tower industry is shifting toward relying more heavily on shared infrastructure, preferring an out-of-the-box concept that utilizes existing commercial real estate and residential rooftops for antenna placement in strategic locations.

The reason for this shift toward the small-cell infrastructure landscape is the accelerating demand for mobile data. The telecom market’s growing hunger for high-speed, pervasive connectivity strains network capacity, especially in inner urban markets. Carriers are scrambling for extra capacity and deeper signal penetration. They are looking for places to put more and better antennae.

On the financial side, along with the explosion of mobile data, has been the incredible growth in telecommunication stocks, especially the three major tower developing companies: American Tower (AMT) Crown Castle (CCI), and SBA Communications Corporation (SBAC). Stock evaluations for these and similar companies have soared to new heights, unseen even before the dot-com collapse. With every roaring market, though, new fears naturally arise concerning the longevity of such profound growth, especially in the wireless infrastructure landscape.

Realizing the market’s potential will require both innovation in technology and savvy capitalization. Quantum Group has a firm grasp on these market fundamentals and a clear vision for enabling clients in this burgeoning and dynamic sector. In this article we highlight some areas of concern pertaining to the market from our position as an experienced and effective M&A firm.

Quantum Group is pleased to be advertising among the many readers of AGL Magazine. For those of you who do not have access to the magazine we will be updating our blog space frequently with our ads, their locations in AGL, and, of course, links to the full pdf magazine file for your reading enjoyment.

With every ad we publish, Quantum Group not only hopes to align the ads themselves relative to the current issue, but also publish a monthly blog with the intention of elaborating on the wording of each ad. We hope, if anything, to at least keep our blog content fresh and invite anyone visiting to follow along. If you missed our last blog related to the ad you see here, or search Quantum Accelerates Tower Development.

Quantum Group understands the wireless network and infrastructure development market and has expertise in capitalizing expansion, acquisition, and development projects.

The Data Rush

Since the first 1G networks launched in the early 80s, wireless networks and supporting technologies have made astounding progress. Building on advances in IP-oriented networks, starting with 3G HSPA Evolution and then WiMax, Verizon took the first leap forward into the “true” LTE market. The rest of the wireless flock would soon follow. This marked the beginning of a mad rush for wireless data and the infrastructure required to carry it. Inspired by ad campaigns for fast 4G LTE speeds, the public clamored to get the latest 4G phones. Promises of “lightning fast” and “largest” or “most reliable 4G LTE network” gave new meaning to owning a phone. It was the revolution the industry had been waiting for. Consumers happily parted with their money for this blazing-fast service. It would seem that the wireless carriers had it made.

Amid all the excitement a shadow began to creep over the wireless landscape. Over-consumption of data began to strain the wireless carriers’ infrastructure and the average consumer’s experience. The term “data-hogging” became a buzzword. A 2012 study found that 1% of the 1.1 million users tracked within a 24-hour period were consuming 50% of all mobile traffic in that area.[1] Carriers were faced with the harsh reality that their networks would be unable to handle the increase of data consumption if more mobile data users required the same amount. By 2013, 91% of Americans owned cellular phones, 63 percent of whom were using their phones to surf the web.[2]

Customer complaints of dropped calls and slow internet access sent carriers scrambling for solutions. Carriers shifted strategy by rolling customers off of their unlimited data plans and charging overage fees on “excessive” data consumption. They hoped that it would discourage data hogging. This strategy, similar to Comcast’s response to Netflix user consumption on their network, was merely a Band-Aid over a gushing infrastructure wound. The revolution had begun and people were not about to stop consuming data, even if they had to pay more for it.

Recognizing that the wireless data market would only continue to accelerate, major carriers were forced to upgrade their networks. By expanding their tower footprint, exploiting urban markets with small cells, and buying valuable spectrum, these networks have been attempting to alleviate some of their demand issues. Though networks might promise the availability of 4G technology, the truth is it’s not a reality for everyone. Verizon, for example, might have 4G LTE available to 298 million Americans, but not all of their customers get the 4G coverage they crave. Especially in high traffic areas, 1GB download speeds are still above and beyond the ability of carriers to provide. The answer remains, expand infrastructure.

A Towering Obstacle

Prior to the 1980s, communication and broadcast tower erection, servicing, and maintenance was a very small, highly-specialized industry. Over the past 35 years the growing demand for wireless and broadcast communications has spawned a dramatic increase in tower construction and maintenance companies.

Wireless carriers have had to expand their network footprint by using these tower developers in various ways such as: constructing numerous proximally relevant tower sites (the denser the network the better), by leasing rooftop locations in dense urban markets, and build-to-suit contracts.

Carriers use built-to-suit contracts to avoid building costs associated with expanding their tower footprint. Under these agreements a tower developing company develops a site under the promise that, when the tower is built, a tenant will go up with it and revenue will be immediately realized. For many tower development companies, this turned out to be very risky.

AT&T’s move to halt Built-to-Suit tower construction across the country had serious implications for tower developers since they had committed major capital and human resources to these projects. With cash flow pinched and only half-built towers to show for their efforts, funding other projects became a crisis for these developers. Quickly finding buyers for a tower with no tenants, no projected revenues and no completion date was crucial to their survival.

Monumental Success

Quantum Group came to the rescue. Leveraging over fifteen years of relationship building and experience representing telecommunication asset companies, Quantum found buyers and freed vital capital for these developers during a time of uncertainty. Wireless carriers acquired the vital infrastructure they needed to expand and tower developers survived to thrive. People kept their jobs and the wireless market rushes on because of the expertise, dedication, and passion of the people who make Quantum Group a towering success.

Quantum Group is involved with every aspect of wireless infrastructure development. As demand increases and coverage deepens, wireless carriers continue to expand their networks, hiring tower developers to build and manage their infrastructure footprint. Building a new tower or collocating an antenna on an existing structure requires compliance with a labyrinth of regulatory and environmental reviews such as:

Approval from the state or local governing authority for the proposed site;

Compliance with the National Environmental Policy Act (NEPA);

Compliance with the National Historic Preservation Act (NHPA);

Notification to the Federal Aviation Administration (FAA); and

Antenna Structure Registration (ASR) with the FCC.

These regulatory processes are meant to ensure that environmental and historic resources are protected. Quantum Group specializes in understanding all of these requirements so that clients succeed in developing their vital infrastructure projects.

The wireless data revolution continues. Tower development continues apace. Whether as a building owner in an urban environment seeking to capitalize on unused space, or a tower development company dealing with wireless carriers, Quantum Group is an experienced ally in your wireless network and infrastructure development business strategy.

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Quantum Group LLC brings wireless infrastructure tower assets buyers and sellers together to structure favorable deals for both - but only repre ..

If you missed Quantum Group's ad in this month's Inside Tower Newsletters we have it here for your viewing. Quantum Group is proud of its team members and the work they do day-in-and-day-out for not only Quantum Group ..

TESTIMONIALS

Radio Rental Investments // Wallace Respess

“I have dealt with a number of business brokers both personally and for clients. Quantum is by far the most aggressive in trying to meet my expectations and in handling the sale in a professional manner. If I were selling another tower today, I would not consider another broker.”

Tower Management & Construction // William E. Yoste

“Just a brief note to express my appreciation to you and to the Quantum Group for the work they did in securing the sale of our two towers. The sale price and the job that the Group did were more than I expected.
Tell everyone at the Quantum Group how much I appreciate their help in selling our towers and that I look forward to working with them in the future.”

M&W Towers // Bert Morris

“I’d like to add special thanks for your attentiveness through out the transaction. I’d like to pay special tribute to two key elements that Quantum provided that I could not have done on my own. First, the negotiations you did were obviously quite intense. I was quite happy to have you on my side… Second, I can’t say enough about the attentiveness to every issue throughout the transaction. If a problem occurred, you were there to explain the issue and develop a resolution that I could agree to.”

Joe W. Patton

“I want to take a moment to thank you and the rest of the staff at Quantum Group. You all have done an absolutely marvelous job in representing our interests. We had fully planned to retire with the tower as a long-term source of income–cash. Quantum stayed in constant contact with me throughout the entire process. You never left me ‘hanging’ or waiting to hear what was happening. Working with Quantum was nothing short of a GREAT, as well as rewarding, experience!”

Johnson Communications // Bob Johnson

“I wanted to take a moment to thank you for the professional and efficient manner in which you assisted in this sale… Along the way I felt I was in capable and knowledgeable hands, and I felt very comfortable knowing I was providing confidential information to third parties but that it would not be compromised.”
“I also respect your willingness to work with me to attain the highest multiple possible in selling my properties. In the future, should you have prospective site owners who might want to hear from ‘satisfied customers,’ please have them call or write to me. I will give them the straight story.”

Compucol Incorporated // James I. Witham

“It is with great pleasure that I recommend the services of the Quantum Group… Their communication with both parties involved was exceptional throughout the complete transaction. The knowledge they had and their helpful ways were very much appreciated. It is refreshing to find someone so competent and willing to help!”

G&K Communications, LLC // Gene Rowe

“G&K Communications, LLC would like to take this opportunity to thank you for all your expertise and help in the selling of our towers. We appreciate the way the sale was conducted and would like to thank you for a job well done. Quantum Group should be commended for their knowledge of the tower industry and their honesty in guiding us throughout many aspects of the sale… Your professional advice and guidance was very beneficial to us. We would be delighted to recommend a referral to any future prospective Quantum clients.”
“All of us at G&K Communications, LLC appreciate what you have done for us and hope that we have the opportunity to complete another transaction with you in the future.”

97.7 WAXZ & 99.5 Classic Country // Rick Plessinger

“This was the first time I had used a broker to sell a business. I am glad to say I am very pleased. Your staff kept me informed from beginning to end.”

K-Communications // Scott Kreifels

“When we decided it was necessary to sell our site, we never dreamed that we could find anyone as dedicated and considerate as you folks have been with us. In finding a buyer for us you followed all of our requirements, which kept our negotiations with them at a minimum…”
“Once again, thank you for a job well done…”

Interstate Towers, Inc. // Harold Sproul

“The Quantum Group exhibits a rare blend of intelligence, market knowledge, professionalism, integrity, honesty, personal warmth, enthusiasm, energy, optimism and determination. Quantum does their homework thoroughly. They will market your assets in a way that is unparalleled in this industry… Quantum will demonstrate real value for you… it is with little concern that I paid their commission after they had completed the price negotiations with a 65% increase over my initial offer. Quantum was the right choice to make for me, and I believe you’d be hard pressed to find anyone who could match their efforts.”

Berkley Group, LLC // Joanne Fischer

“In the end, the deal you brought to the table was 40% higher than any offer we received during our own solicitation efforts…”
“I appreciated the candor, enthusiasm and sense of responsibility that you demonstrated during this process. I look forward to our next deal…”

Cape Electronics (RDC Communications) // Robert Foley

“Thank you and your staff for making the process of selling our towers as easy as possible…”
“You not only got what I consider to be the best price possible but you minimized the aggravation of what has to be the most exacting process that I have ever encountered…”

Telecom Acquisitions One // Phil Whisenhunt

“I enthusiastically recommend the Quantum Group to any wireless telecommunication tower business owner needing assistance in valuating, marketing and selling their assets.”
“The Quantum Group applies a unique combination of specific industry knowledge and expertise along with financial market experience and understanding to effectively achieve maximum value and exposure of your assets to the correct industry leading buyers. They are not the typical broker that prepares a standard sales package and markets to the masses in hopes of finding a qualified buyer. They have the expertise and relationships to quickly evaluate your assets based on quality, quantity and geographic location and immediately present them to pre-qualified industry leading buyers who are looking to add those type assets in those geographic areas. This results in achieving maximum sales price, minimum time of due diligence and the highest percentages of closings. It is my opinion those are the most important factors in any proposed sales transaction and is why I will again use the Quantum Group when liquidating assets.”

Diamond K Tower Company // Mike Kuhn

“I enthusiastically recommend the Quantum Group to any wireless telecommunication tower business owner needing assistance in valuating, marketing and selling their assets.”
“The Quantum Group applies a unique combination of specific industry knowledge and expertise along with financial market experience and understanding to effectively achieve maximum value and exposure of your assets to the correct industry leading buyers. They are not the typical broker that prepares a standard sales package and markets to the masses in hopes of finding a qualified buyer. They have the expertise and relationships to quickly evaluate your assets based on quality, quantity and geographic location and immediately present them to pre-qualified industry leading buyers who are looking to add those type assets in those geographic areas. This results in achieving maximum sales price, minimum time of due diligence and the highest percentages of closings. It is my opinion those are the most important factors in any proposed sales transaction and is why I will again use the Quantum Group when liquidating assets.”

The Mount Washington Radio Group // Ron Frizzell

“In the most challenging of times; in a market were funds are drying up everywhere; The Quantum Group was able to find us a buyer for our AM Tower and its tenants. “Mission Impossible” accomplished in the first quarter of 2009.
They were pleasant and professional to work with; did not over promise, and brought it in at a fabulous multiple.”

Gilly Development Corp. // James M. Gilly Jr.

“Having known Phil and Lane (past employee) for years, I was not surprised when they were able to deliver as promised on a recent sale of several broadband tower sites. Both Phil and Lane conduct themselves professionally, represented us properly to perspective buyers, and the result was a transaction that satisfied all the parties.”
“I would recommend Quantum to anyone interested in selling their tower sites to prospective buyers and know they would secure the best terms available.”